HomeMy WebLinkAbout2014-10-06 Ordinance 5273ORDINANCE NO. 5273
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE
BUDGET FOR FISCAL YEAR 2015 IN THE GENERAL FUND DUE TO APPROVAL OF A
RENT AGREEMENT AMENDMENT WITH R&T RESTAURANT CORPORATION AS A
RESULT OF REDUCED GOLF COURSE ACTIVITIES. IN THE GENERAL FUND, THE
ESTIMATE FOR RENTAL INCOME REVENUE WILL BE REDUCED BY $23,400,
OFFSET BY A REDUCTION TO THE BUDGET STABILIZATION RESERVE.
The Council of the City of Palo Alto does ordain as follows:
SECTION 1. The Council of the City of Palo Alto finds and determines as follows:
A. Pursuant to the provisions of Section 12 of Article Ill of the Charter of the City of Palo
Alto, the Council on June 16, 2014 did adopt a budget for Fiscal Year 2015; and
B. The Fiscal Year 2015 Adopted Operating Budget assumed the closure of the Golf
Course effective July 1, 2014 to reconfigure the Golf Course; and
D. In anticipation of the Golf Course Reconfiguration Project, the City applied for permits
from the State Water Board; and
E. Due to continued delays in receiving permit approval, staff has engaged with R& T
Restaurant Corporation, a concessionaire located at the City's Golf Course to renegotiate rent
payments due to the delay of the Golf Course reconfiguration project and resulting reduction in
number of golf rounds played and customers frequenting the golf course and the restaurant;
and
F. Therefore, staff recommends an amendment to the contract with R& T Restaurant
Corporation in order to reduce the monthly rent payment from the beginning of July 2014 from
$4,150 to $2,200 or 7% of the gross revenues, whichever is greater, and the reduction of the
monthly payment of utilities services from $2,160 to $1,500 up to the closure date of the Palo
Alto Golf Course Reconfiguration Project; and sets the rent to seven percent (7%) of the
monthly gross sales during the period that the Palo Alto Golf Course is closed for construction
of new improvements; and
SECTION 2. In the General Fund, the revenue estimate for rental income is hereby
reduced by Twenty Three Thousand Four Hundred Dollars, offset by a corresponding decrease
to the Budget Stabilization Reserve.
SECTION 4. As provided in Section 2.04.330 of the Palo Alto Municipal Code, this
ordinance shall become effective upon adoption.
'·
SECTION 5. The Council of the City of Palo Alto hereby finds that this is not a project
under the California Environmental Quality Act and, therefore, no environmental impact
assessment is necessary.
INTRODUCED AND PASSED: October 6, 2014
AYES: BERMAN, BURT, HOLMAN, KNISS, PRICE, SCHARFF, SCHMID, SHEPHERD
NOES:
ABSENT: KLEIN
ABSTENTIONS:
NOT PARTICIPATING:
ATIEST:
~I~
~CityClerk
APPROVED AS TO FORM: APPROVED:
~Yl~
Senior Assistant City Attorney